By the Sun Life team
Is having better financial habits part of your plans? Start now! Here are 20 simple ideas that will help you better manage your finances.
Want to make better life choices for the new year? Many of us do it. According to a recent survey, 3 out of 10 people plan to make New Year’s resolutions.
Here are the most common resolutions noted there:
Exercise more (51%)
Saving (49%)
Eat better (48%)
Lose weight (42%)
Reduce your stress level (35%)
Sticking to a budget (33%)
Would you like to adopt these financial resolutions in 2022? Good idea! Especially since you could kill two birds with one stone, you could reduce your stress by respecting your budget more. That’s a good plan.
Making financial resolutions is easier than you think
Do not try to adopt all these resolutions at the same time! Some can be taken right now, and they will pay you back quickly. Others require more planning. Either way, all of these steps will put you on the path to a brighter financial future.
- Make a budget. Do you not have any? Try our budget calculator to get an idea of your monthly expenses. Already have one? Update it and make sure it’s realistic. Consider emergency expenses, such as vehicle repairs. Don’t forget annual expenses, such as property taxes or winter clothing for the family. Next, stick to your budget as much as you can.
- Pay yourself first. This is one of the basic rules of personal finance. But what does it mean? It consists of saving a reasonable amount each month before paying your bills or making any purchase. Remember to deduct this amount automatically. So if you don’t see the money, you’ll be less tempted to spend it.
- Build an emergency fund. With the pandemic, many Canadians have learned the importance of saving for the unexpected. But how much money should you set aside? Aim for the equivalent of 3 to 6 months of your net income. The most important thing is that you start saving now. A modest amount taken from each paycheck can pay off in the end. Also, consider putting this money in a tax-free savings account (TFSA). You will be less tempted to pull it out. Check out this article to help you: 5 tips for creating an emergency fund
- Maximize your benefits. These benefits include retirement savings and group benefit plans. Call the company that runs these plans and ask them about the best way to take advantage of yours. For example, many employers contribute in addition to that of employees. This is free money, so feel free to take advantage of it.
- Buy your items at the right time. If possible, buy what you need… after everyone else! Want a winter coat? Take advantage of the end of season discounts. Stores are emptying their stocks and lowering prices. On Halloween, shop for decorations on November 1st. You will have them for the following year, and you will probably have paid much less.
- Meet with an advisor. Or find one if you don’t have one. A Sun Life advisor can help you develop a personalized plan to make your dreams come true.
